The Cause: The Vietnam War led to increases in military spending at a time when America was suffering both international payment and trade deficits. As a response to international demands for payment, President Nixon abandoned the Bretton Woods system of basing currency exchange on the value of gold, effectively taking the dollar off the gold standard. This started a chain reaction of other countries abandoning the gold standard, leading to a period of economic volatility as international currencies stabilized in relation to one another. This precipitated the stock market crash of 1973, affecting economies worldwide. The same year, OPEC placed an oil embargo on the United States because of America’s support of Israel during the Yom Kippur War.
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.